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Friday, July 27, 2012

House #9: Done, On the Market and...Under Contract!

This post was supposed to be to let you know that we were done with all the work on House #9 and the house was on the market. I was just not expecting to also be announcing that the house is under contract!

That's right, within 24 hours of listing we had two offers. But first let me  backup a bit and go over what it took to get this house on the market... 

A couple of posts ago I commented on how I was having a "labor dispute" on this project. After a lot of arguing and controversy we both moved on.   

This left me to go out and hire some more to get the rehab finished. On the last week of work we did final electrical, appliance installation, final landscaping, a bit more carpentry and "touch up" interior paint which ended up being re-painting 50-60% of the interior. And of course the final cleaning. 

This left me (as in me with my own two hands)  to finish the usual odds and ends that are always left at the end of such a rehab. These are things like switch covers, door stops, applying caulk in bathtubs and sinks and so on. These are small, simple things but they add up. And because I have this obsession with the house being perfect, this meant several nights of work for me (I have got to find a way to stop doing this). 

So anyway, back to the offers...

The first one was a CASH offer that we accepted but the buyer was courteous enough to notify us of some very specific conditions to the purchase. In 24 hours later we found out that the offer would not go through. 

We moved on to the 2d offer and after some countering we were under contract. I can't go into the details of the offer but it's obviously good enough. Now we move into the buyers due diligence period, their inspection and the start of their mortgage qualification...gulp!

The buyer will be trying to qualify for an FHA loan, and although we have had success with those in the past, they are a mixed bag. First off they can take a long time to get approved. Second, between the appraiser and underwriter they can place some stringent if not ridiculous demands on the seller (me) if they feel like it. We'll see...

Even though it has not been a week since we put the house in the market we have had about ten other showings with 2 or 3 of them expressing interest in submitting an offer but disappointed that it's already under contract. This tells me a couple of things:
  • The price is right. Right for the area and condition of the house. Believe me I know the feeling of putting a house on the market and "hearing crickets". This amount of showings so quickly tells me there are people looking in this area at this price range.
  • The rehab is right. We are priced at the top end of what is for sale in the neighborhood, but none of those houses have as many improvements/upgrades as my house. If you look at the scope of work you'll see we did a top to bottom rehab including every major system.
  • The house shows great. From the professional pictures we put on the internet (I'll post here soon) to the curb appeal to the staging furniture. We made sure everything was perfect (you see, there I go again with "perfect") before listing the house for maximum impact
One more thing, the buyer agreed to use our lender and that is awesome. Because our lender is very competent we will know quickly if the buyer will be able to qualify for a loan or not. He is also very good at qualifying those buyers that need a little extra help. 

So now I step back, let the lender do his thing and move on to start the rehab on House #10.

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